Abstract
decompose it in firm efficiencies—which indicate how close firms approximate best
practices—and an organization efficiency—which indicates the degree of optimality
of the number of firms and their distribution. The latter component provides an
efficiency measure for the industrial organization. Economies or diseconomies of
scale and of scope play a big role in the determination of the optimal industrial
organization and the consequent measurement of the efficiency of an observed
industry. Different approaches to the modeling of scale economies will be reviewed.
The paper shows in detail how the efficiency of an industrial organization can be
measured as a gap between mean firm efficiency and overall industry efficiency. The
analysis is extended to dynamic models, to measure the role of entry and exit in the
efficiency of the industrial organization.
| Language | English |
|---|---|
| Title of host publication | Benchmarking for Performance Evaluation |
| Subtitle of host publication | A Production Frontier Approach |
| Editors | Subhash C. Ray , Subal C. Kumbhakar, Pami Dua |
| Place of Publication | New Delhi |
| Publisher | Springer India |
| Pages | 221-250 |
| ISBN (Print) | 9788132222521 |
| State | Published - 2015 |
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Efficiency measures for industrial organization. / ten Raa, Thijs.
Benchmarking for Performance Evaluation: A Production Frontier Approach. ed. / Subhash C. Ray ; Subal C. Kumbhakar; Pami Dua. New Delhi : Springer India, 2015. p. 221-250.Research output: Chapter in Book/Report/Conference proceeding › Chapter › Scientific › peer-review
TY - CHAP
T1 - Efficiency measures for industrial organization
AU - ten Raa,Thijs
PY - 2015
Y1 - 2015
N2 - The aim of the paper is to measure the efficiency of an industry, and todecompose it in firm efficiencies—which indicate how close firms approximate bestpractices—and an organization efficiency—which indicates the degree of optimalityof the number of firms and their distribution. The latter component provides anefficiency measure for the industrial organization. Economies or diseconomies ofscale and of scope play a big role in the determination of the optimal industrialorganization and the consequent measurement of the efficiency of an observedindustry. Different approaches to the modeling of scale economies will be reviewed.The paper shows in detail how the efficiency of an industrial organization can bemeasured as a gap between mean firm efficiency and overall industry efficiency. Theanalysis is extended to dynamic models, to measure the role of entry and exit in theefficiency of the industrial organization.
AB - The aim of the paper is to measure the efficiency of an industry, and todecompose it in firm efficiencies—which indicate how close firms approximate bestpractices—and an organization efficiency—which indicates the degree of optimalityof the number of firms and their distribution. The latter component provides anefficiency measure for the industrial organization. Economies or diseconomies ofscale and of scope play a big role in the determination of the optimal industrialorganization and the consequent measurement of the efficiency of an observedindustry. Different approaches to the modeling of scale economies will be reviewed.The paper shows in detail how the efficiency of an industrial organization can bemeasured as a gap between mean firm efficiency and overall industry efficiency. Theanalysis is extended to dynamic models, to measure the role of entry and exit in theefficiency of the industrial organization.
M3 - Chapter
SN - 9788132222521
SP - 221
EP - 250
BT - Benchmarking for Performance Evaluation
PB - Springer India
CY - New Delhi
ER -